Question
Assume that you wish to purchase a bond with a 10-year maturity, an annual coupon rate of 10 percent, a face value of $1,000, and
Assume that you wish to purchase a bond with a 10-year maturity, an annual coupon rate of 10 percent, a face value of $1,000, and annual interest payments. If you require a 9 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
